SCRM Framework for Enhancing Supply Chain Competence - Essay Sample

Introduction

From the article, the author proposes the development of a new framework on supply chain risk management (SCRM). The structure will focus on various supply chain alignment levels of supply chains, through business best strategies and implications of performance metrics. The explanations of the author are based on the fundamental antecedents of the SCM as the basis of making supply chain orientation and hence enhancing supply chain competences. Gocer et al. (2015) propose a framework called SCMCM (supply chain management capability model). Supply chain members understand better the coordination mechanisms of the supply chain through the models. Consequently, the author of the article affirms his assertion through empirical evidence to support the sustenance of supply chain members' competitive advantage.

Background of the Issue

For the companies targeting at safeguarding their competitive advantage, they have resulted in improving their supply chain orientation. Hence it is essential to handle possible challenges and uncertainties in the supply chain to manage the supply chain efficiently and effectively. Considering its importance, models of the supply chain enhanced with the involvement of the concept of supply chain risk management (SCRM). Supply chain risk management is perceived as one of the very powerful competitive machinery for businesses. A comprehensive framework gives a road map to supply chain members together with the other competences offered by an enhanced point of supply chain orientations (Gocer et al., 2015).

Through literature, a model had to be developed, which focused on the competence idea on the premeditated implementation of risk management, best practice, and management of performance. The study aimed at improving the existing gaps and possibly propose some new frameworks on supply chain risk management. Emphasizes are placed at various levels of supply chain orientations of members. Hence the study would give relevant guidance for both researchers and also practitioners on matters management or supply chain risks.

Application of Supply Chain Management (SCM) Theory

For a successful supply chain management calls for a change from managing specific functions to integrating aspects into mainstream supply chain processes. It incorporates the active streaming of businesses supplies side undertakings to maximize the client's value while gaining a competitive advantage in the market. Ideally, SCM tries to centrally control the production, shipment, and product distribution (Lim et al., 2017). Management of supply chain sees organizations cutting their excess costs and then deliver products faster to the consumers. SCM theory works on the idea that nearly every product that finds its way to the market is as a result of the collective efforts of various firms that make up the supply chain.

In the controlling risks in the supply chain, as relates to the article, several applications can be drawn in the case of contracting management, efficiency, and innovations have given priority. The use of external suppliers of services or products requires an evaluation of all the potential exposure liabilities. Besides, ERM principles are employed to ensure that unnecessary consolidation of the supplier community does not happen. Finally, supplier financial stability analysis is considered in risk management.

Managerial Implications

SCMC model can be adopted as a structure for managers to manage well risks involved in the supply chain. Thus, directors can determine all the diminuendos of the supply chain and possible connections that exist with the affiliates of supply chain (Gocer et al., 2015). In determining the member's position, it is based on the primary backgrounds of supply chain management and perspectives in a specific model. To progress successfully via the upper level of the model, managers could discover some of the potential areas which need improvement both in their supply chain and in the organization. For the above to be achieved, continuity and transition elements of SCMC can be adopted. Organizations can also leverage such abilities, to enhance the effectiveness of the flow of information between and within members of the supply chain. Correspondingly, leaders can scrutinize the finest performance and practice metrics that are suitable for their prevailing supply chain intensities in the ideal. Hence look for upgrading prospects to propel them to higher points.

Managers should understand that supply chain management is an integral aspect of the business, and it is essential for customer satisfaction and the success of a business. From the article, SCM helps in boosting customer services. Reasonably, clients expect the right product assortment and quantities to be delivered to them. On the company, managers should know that SCM will help them to reduce their operating costs in the company. Retailers and manufacturers much depend on managers of the supply chain to design networks that address the goals of customer service with the least cost.

Another implication of SCM on managers lies in its ability to improve the financial position of a firm. Supply chain managers help in the control and reduction of costs involved in the supply chain (Kilubi, 2018). They are also liable for decreasing the adoption of substantial fixed assets in the supply chain. Additionally, they speed up the flow of production to clients hence client satisfaction and retention. Therefore, from the article, the models are of great use in modeling the SCM managers in the provision of their unique roles to the company and the implementation of CSR

Summary

Supply chain risk management has come out as one of the most potent competitive tools for most organizations. Consequently, companies have put efforts to enhance pliability and reduce the susceptibility of the supply chain. In managing the supply chain, frameworks have been developed like supply chain operation reference. The models offer a full-set which links up business processes to the best practices. Factoring the supply chain model, it facilitates members to understand better the coordination mechanisms and manage the relationship among members. Conclusively, better management of supply chain and mitigation of the possible risks ensures that the company realizes its production potential.

References

Gocer, A., Yurt, O. Baltacioglu, T., & Yumurtaci, I. O. (2015). A new framework for supply chain risk management through supply chain management capability.

Kilubi, I. (2018). Managerial implications. In Strategic Technology Partnering and Supply Chain Risk Management (pp. 207-208). Springer Gabler, Wiesbaden.

Lim, M. K., Tseng, M. L., Tan, K. H., & Bui, T. D. (2017). Knowledge management in sustainable supply chain management: Improving performance through an interpretive structural modelling approach. Journal of cleaner production, 162, 806-816.